well developed business plan by my student's on course of entrepreneurship and enterprise development

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MIZAN-TEPI UNIVERSITY
TEPI CAMPUS
School of Computing and Informatics
Department Information Systems
Entrepreneurship Business Plan
Indian Restaurant
Submitted by:-
1) Engida Admassu …………...….SCIR/046/06
2) Samson Demeke …………..…..SCIR/126/06
3) Gadisa Zawude ……...…….......SCIR/052/06
4) Yonas Abera ………………......SCIR/147/06
5) Endaweke Firew ………………SCIR/045/06
6) Mitiku Addissu …..……………SCIR/045/06
indianrestaurant@gmail.com

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Submitted to: - Mr. Zerihun.T
Submission date: - 24/10/2009

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Contents
Acknowledgment................................................................................................................................1
Executive summary ............................................................................................................................2
Business description and vision ...........................................................................................................3
Business description........................................................................................................................3
Vision/mission statement.................................................................................................................3
Business profile ..............................................................................................................................4
Business objectives .........................................................................................................................4
Definition of the market......................................................................................................................4
Target market.................................................................................................................................4
Description of product and service ...................................................................................................5
Organization and management.............................................................................................................6
Organizational structure ..................................................................................................................7
Management team...........................................................................................................................7
Marketing and sales strategy................................................................................................................7
Sales strategy..................................................................................................................................8
Promotion and Advertising..............................................................................................................8
Pricing ...........................................................................................................................................8
Financial management ........................................................................................................................9
Resource requirement......................................................................................................................9
Raw material and inputs annually.....................................................................................................9
Utilities and budget annually ...........................................................................................................9
Machinery and equipment .............................................................................................................10
Human resource requirement.........................................................................................................10
Start-up summary .........................................................................................................................10
Start-up requirements ....................................................................................................................11
Start-up funding............................................................................................................................11
Sale forecast.................................................................................................................................11
Direct cost of sales........................................................................................................................11
Milestone .....................................................................................................................................12
Financials plan..............................................................................................................................12
Pro forma profit and loss ...............................................................................................................12

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Expenses......................................................................................................................................12
Balance sheet................................................................................................................................13

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Acknowledgment
First of all we would like to say gratitude to our instructor Mr Zerhin Tolera next to the
almighty God because this project enables us to gain a wide knowledge about how to be more
social interactive for business and how to prepare a business plan for the future with the concept
of how to manage business for self-independence and to achieve the interest of Ethiopian
government.

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Executive summary
Ethio-Indian restaurant is a restaurant that serves Ethiopian and Indian foods and drinks to the
tepi campus university around community especially the teachers that are local and foreign and
staff members and for students. We serve with quality of services that our customers make them
comfortable and Indian their home relaxing and refreshing spot. Our goal is make Ethio-Indian
restaurant a community centre or makes our costumer our family by giving them warm and good
services so they won’t let go. We intended to be profitable by increasing our client base through
becoming a highly favourable destination.
The owners of the Ethio-Indian restaurant are fourth year information systems student (especially
group 1) that is graduating this year and they will be the first fund resources and they will ask
loans from the government.
The working area will be rent around tepi campus are so there will easier for the customer to
reach also to the restaurant to attract the customer.
And also in order to attract the societies to the business, the owners of the business will use
fliers, bill board and word of mouth to advertise the business.
Ethio-Indian restaurant is going to give a service to everybody with no restriction of status, age
and gender. The main things that are going to be served by this business foods and drinks.
All the members of the business have their own responsibilities in order to achieve the goals of
this business. To start the business and carry on with in well condition, it has been collected
enough money from the owners and by taking a loan from the government about 80%. In short
the money has gotten as follows.
 100,000 birr. In the form of short-term loans
 100, 000, birr .in the form of personal saving from owners of the company.
 300,000 birr in the form of long-term loans from government officials.
And also in order to attract the societies to the business, the owners of the business will use
fliers, bill board and word of mouth to advertise the business.

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Business descriptionand vision
Business description
Ethio-Indian restaurant is serving Ethiopian and Indian selected foods for customers around tepi
campus university area and some of tepi area favourite cultural foods and drinks.
Vision/missionstatement
Ethio-Indian restaurant mission is make good customer satisfaction and environment that they
can feel with quality of service. And make profit to so the team can gain the money, time and
effort they given to Indian. Making brand restaurant in tepi campus surrounding especially
teachers.By fair price to the customer.
The restaurant will be successful because of there is no place that serving Ethiopian and Ethio-
Indian restaurant in tepi area.
The restaurant will be located around tepi campus university area close to it so that everybody
come and relax their mind it can access all the customer.
Serving Ethiopian and Indian foods and drinks to the customer with quality of service and fair
price.
The vision of the restaurant is to be the first choice by the customer in the tepi campus area for
needed quality with a fair price and accessible area. Generally the restaurant has bright vision to
come up with sophisticated services for its customers by opening different branches in different
places which increase the market size and job opportunity for different peoples.
0%
10%
20%
30%
40%
50%
60%
70%
Saving Short term loan Long term loan
Start up
Start up

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Business profile
The restaurant is owned by group it is corporation held.It will give a restaurant service serving
food and drinks to customer and take away food system in order to take the food and enjoying
the food in their home and anywhere they want
Business objectives
 To be a successful restaurant in tepi campus area
 To increase the number of customer every day
 Give food and drinks at good price and good quality
 Quality control for every service that we give
 Establish community destination by the end of the year
 Increase the profit by half the end of the year
 Make way of making money for the low income students
 To create confortable area for foreigner teachers
Definition of the market
The business will be in the Ethiopian and Ethio-Indian restaurant industry that is giving food
and drinks. And good chilling and resting and enjoying area.it is new market.
In the current market there is no restaurant in this area that is serving the service that we give
so it is a unique organization.
The target customers are the teachers that are working in the campus the Ethiopian teachers
and the Indian teachers and staff members and students of the university and local people that
is working and living in the tepi town area.
The target customer may be both sexes whose are at any age level working class any income
level.
There is shortage of good restaurant in tepi campus area for working members of the society
and chilling area for them.
Target market
In the tepi campus area there is large market for quality restaurant to serve good foods. Most
of the foreign teachers are living alone and they are cooking in their home and that make
them tired addition to the daily work or teaching in the campus we think we can resolve that
by serving their foods here, Also other teachers are doing the same thing and most of the
students are using non cafe service The target market falls to anybody which needs the
restaurant service. The customers can be
 Teachers
 Foreign teachers
 Students
 Staff members
 Tepi society

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Descriptionof product and service
Ethio-Indian restaurant give food and drinks service for the customers around tepi area, there
are two menus that is serving in Ethio-Indian restaurant these are Ethiopian foods and Indian
foods. These are the starting menu there will more additional foods and drinks in the future.
Ethiopian foods
Yefesg foods(የፍስግ ምግቦች ዝርዝር)
Yetsome foods(የፆም ምግቦች ዝርዝር)
Foods Price
Beyaynet 14
Tegabino 14
Ferfir 14
Pasta 14
Shero Feses 14
0%
10%
20%
30%
40%
50%
60%
70%
Foreign teachers Local teachers staff student Society
users
users
Foods price
Tebs 33
Key wot 28
Kekel 28
Misto 28
Sega firfr 33
Maheberawi 38
Doro Fanta 28
Dulet 20
Pasta be sega 20

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Indian foods menu
Break fasts
Item price
Idly 18
Dosai 19
Pongal 17
Vadali 18
Poori 18
Chappathi 18
Appam 19
Lunch
items Price
Rice 42
sambar 40
rasam 43
poriyal 39
chrd 42
payasam 40
papadam 40
pickel 40
Drinks
Hot drinks
items Price
coffee 2
tea 2
spereas 2
Cold drinks
items Price
Soft drinks 9
beer 14
juices 8
Organizationand management
The restaurant will be organized in professional manner. It has manager, cashier, store keeper,
waiter, Indian chief, Ethiopian chief assistant chief and dish washer so it is a good organized
restaurant that is the key to success to it.
The owner of the restaurant are six of the group member’s Engida Admasu, Yonas Abera, ,
Samson Demeke, Mitiku Adisu, Endaweke Frew, Gadisa Zewude.

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The restaurant will get the necessary legal documents that must be fulfilled in order to run the
business these are trading certificate and tin number for paying tax and other payments to the
government.
The manager who is running the restaurant is good qualifying and has experience of managing
the restaurant business that hired in the implementation step.
Organizational structure
Ethio-Indian restaurant need 12 employees to operate the work. these are
Responsibility number
Manager 1
Store keeper 1
Cashier 1
Waiters 4
Ethiopian chief 1
Indian chief 1
Assistant chiefs 2
Dis washer 1
The restaurant will be managed by one manager and owned by group members that is giving
service to the customers when they are coming to the restaurant and taking sit the waiter take the
orders and ordering to the chief and deliver to the customer in a good and professional manner or
as the wish of the customer the restaurant also will give take away service that are faster, the
foods or drinks are packed in package for taking away for the purpose of using at home and
anywhere else.
Management team
Ethio-Indian restaurant will be managed by good and experienced manager that will be hired.
The management philosophy of Ethio-Indian restaurant is based on respect for each fellow
employees. Respect for every client, and every individual responsibility. The management team
will consist of the owner and the manager and employee’s Indian success is dependent on the
warmth uniqueness of its atmosphere which is generated by fun loving and caring employees.
The Manager job is managing the restaurant the store keeper is storing the materials and ordering
raw material, supplies and other things that is necessary, the cashier job is keeping money in
transaction and book keeping and making invoice.
Marketing and sales strategy
In the tepi campus there is a shortage of good restaurant and that is giving quality of service to
the society of tepi campus area we think that it is a big market with a little competitors in this
business. The owners will be responsible for advertising.th advertisement start before the
opening of the restaurant and it will continue further more. We position our self as top and that is
true.

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Sales strategy
To attract customer for our business we will try to make our services to have quality and
faster service because most of our target customer have busy time schedule. And give a service
for a customer’s ethically with good personal behavior.
Promotionand Advertising
The restaurant has different plans for the promotion of the business but the company is in
start-up process. So there is limitation on the promotion. Example, promoting on TV. So the
company used flier, billboard and word of mouse.
Flier: Ethio-Indian restaurant will implement strategy in order to create customer awareness and
demand. On this process, the fliers are distributed all parts of Tepi as much as possible, in hotels,
in university, business areas, companies and also to individuals. For the flier the budget assigned.
Billboards: Ethio-Indian restaurant center have planned to have billboards throughout Tepi city.
Word of mouse: it is also another promotion strategy for our customers to purchase and use
service offered by company. Every member of the company is involved through this process.
Ethio-Indian restaurant realizes that in the future, when competition enters the market,
additional revenues must be allocated for promotion in order to maintain market share.
Pricing
The method for setting pricing is based on our business capital and considering customers
interest as far as their income, but not much considering lowest pricing. We will to reduce our
service and product to fit our competitors without affecting the business plan. In general we will
distribute the product and services by optimize pricing or cost to satisfy customer’s interest and
needs.

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Financial management
Resource requirement
Raw material and inputs annually
The raw materials are the main necessary things that buys from starting day to the end of the year
these are vegetables like onion, tomato, carrot, and cabbage and also per kilo, fruits are avocado,
mango, papaya and banana and also, flours are tef duket, bread flour, berbre and shero and others
are listed.
Item Raw materials quantities Price per
unit
source Total cost
1. Vegetables onion 520kg 6240 Local
market
34,840
tomato 520kg 7800
potato 1040kg 10400
others 1040kg 10400
2. Fruits - 4160 Local
market
4160
3. Tef 5200kg 1500 Local
market
78,000
4. Oil 260 litre 70 Local
market
18,000
5. Meat 550kg 140 Local
market
77,000
6. Others 50,000
7. Total 262,000
Utilities and budget annually
Item Yearly
consumption
Unit price per Total cost
Water 260,000 litre 0.0125 3,250
Electric power 2,000KW 0.7 1,400
telecommunication 1000 1,000
Total 5,650

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Machinery and equipment
Human resource requirement
No Authority No person Monthly salary Annual salary
1 Manager 1 5000 60,000
2 Indian chef 1 3000 36,000
3 Ethiopian chief 1 2000 24,000
4 Store keeper 1 1500 18,000
5 Cashier 1 3500 42,000
6 Waiter 4 1000*4=4000 48,000
7 Bar man 1 1000 12,000
8 Assistant chief 2 1500*2=3,000 36,000
9 Dish washer 1 1000 12,000
10 Total 288,000
Start-up summary
The restaurant starts from finding the right place for the customer to reach easily and close to the
tepi campus that is the target customer at. After that we rent and signing the right documents to
the owner to start improvement making construction to the place. The other thing is that finding
the right person to the job the manager and the chiefs, the Indian chief will be hired from Addis
Ababa and the Ethiopian chief from tepi area.
Item Fixed asset Required unit Unit cost Total cost
1 stove 1 in number 2,000 2,000
2 Bakery machine 1 in number 3,000 3,000
3 Cocking material 5,000 5000
4 Serving materials 1000 1000
5 fridge 2 10,000 20,000
6 television 2 5,000 10,000
7 Speaker 1 3,000 3000
7 chairs 40 200 8,000
8 tables 10 400 4000
9 Total 56,000

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Start-up requirements
Start-up expenses
Legal 4,000
Advertisement 2,000
Rent 12,000
Decoration 50,000
Other 10,000
Total start-up expenses 68,000
Start-up assets
Cash required 50,000
Start-up inventory 12,000
Other current asset 20,000
Total asset 82,000
Start-up funding
Start-up expenses to funding 68,000
Start-up assets to fund 82,000
Total funding required 150,000
Sale forecast
Year 1 Year 2
Sales
Sale for food for
only revenue
900,000 1,100,000
Sale for drink for
only revenue
710,000 800,000
Total assets 1,610,000 1,900,000
Direct cost of sales
Year 1 Year 2
Costs
Cost for food 210,000 230,000
Cost for drink 250,000 260,000
Total direct cost 460,000 540,000

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Milestone
Milestone Start date End date Budget
Business plan 03/08/09 03/09/09 200
Financial lending 02/02/10 16/02/10 300
Lease agreement 17/02/10 23/02/10 100
Decoration 24/03/10 05/04/10 50,000
Inventory 05/04/10 09/04/10 12,000
Advertisement staff 10/04/10 10/05/10 2,000
Opening 10/05/10 15/05/10 0
Totals 64,600
Financials plan
Pro forma profit and loss
Year 1 Year 2
Sales 1,610,000 1,900,000
Direct cost of goods 460,000 540,000
Net sales 1,150,000 1,360,000
Expenses
Year 1 Year 2
Payroll 288,000 312,000
Raw materials 262,000 278,000
Sales and marketing and other
expenses
2000 2000
utilities 5650 6560
Rent 12,000 14000
Pay roll taxes 26,255 27,150
Total operating expense 595,915 648,560
Profit before interest and taxes 554,085 711,440
Interest expense 52,536 61,356
Tax incurred 150,462 163,098
Net profit 351,087 486,986

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Balance sheet
Year 1 Year 2
Assets
Current assets 0 0
Cash 500,000 600,000
Inventory 12,000 22,000
Total current assets 512,000 622,000
Capital
Earnings 351,087 486,986
Total Capital